1. Field of the Invention
The present invention relates generally to check authorization and more particularly to check authorization using portable wireless devices.
2. Background Art
It is estimated that more than three hundred and sixty five million checks are returned to individuals and/or businesses annually, without payment being made. Many of these checks are fraudulent or have other problems, which limit the payee from being paid by the payer. These checks are typically not processed at the point of transaction to determine if the checks should be authorized or denied, and if the checks could be processed at the point of transaction, acceptance of fraudulent checks and checks having other problems could be reduced.
Payees, individuals accepting checks on behalf of the payees, delivery persons, merchants, and the like, hereinafter called “check takers”, have the need to accept checks for payment of merchandise at the point of transaction, which is often at the time and place of delivery; however, because of the inability of the check taker to verify whether the customer or payer, hereinafter called “check writer”, checking account is open, whether the check writer has written more than a specified number of checks in a specified time period, has any unpaid checks, or whether the check writer's checking account has a positive account balance, the payee is often subject to not getting paid for merchandise being delivered. This, then, raises concern and often reluctance of the check taker to accept checks at the time of delivery, which decreases the payee's ability to transact business, especially when the check writer prefers or has to pay by check.
Of course, if the check taker could obtain access to banking information in real time, which indicates or instructs the check taker to accept a check, while making the delivery, much of the doubt and concern about payment could be eliminated.
If a check taker could also obtain such instructions from a device that he or she normally carries, then many of the check problems would be solved. The check taker could then determine, while making the delivery, before handing the merchandise over to the check writer, whether the check writer's checking account is open, whether the check writer has written more than a specified number of checks in a specified time period, whether the check writer has any unpaid checks, and whether the check writer's checking account has a positive account balance, and, in fact, whether the check taker will actually get paid upon delivery of the merchandise.
It is, thus, necessary to determine, in real time, upon receipt of check information from a check writer, whether the check writer's checking account is open, whether the check writer has written more than a specified number of checks in a specified time period, whether the check writer's checking account has any unpaid checks, and/or whether the checking account has a positive account balance, using a device and preferably a standard off-the-shelf handheld wireless device, such as a text messaging enabled cell phone, web enabled cell phone, short message service (SMS) enabled wireless device, wireless application protocol (WAP) enabled cell phone, personal digital assistant (PDA), pager, mobile phone, or other suitable wireless device, that the check taker typically carries substantially at all times, is easy to use, low priced, cost effective, and indicates to the check taker, in a simple and easy to understand manner, whether or not to accept a check for payment.
Different check authorization systems and methods have heretofore been known. However, none of the check authorization systems and methods adequately satisfies these aforementioned needs.                U.S. Pat. No. 6,754,640 (Bozeman) discloses a universal positive pay match, authentication, authorization, settlement and clearing system The system includes several technologies for inputting check register information connectively from various users of the system, a database for storing the check register information and the check histories, software that searches for and captures escheated check register information, software that automatically polls check register information from the customer, the customer's bank or merchant and conducting and transmitting a partial or full reconciliation of the check register information from the system to the customer to reduce check and card fraud. Also included in the system is the ability of the customer's bank to provide either a stalled debit or debit stall to the customer.        World Patent No. WO9736267 (Funk) discloses an automated positive check authorization system, which includes an input device for receiving a check amount and checking account information pre-printed on a check drawing on a checking account presented in a transaction at the time of check presentment. The checking account information and check amount are electronically transmitted to a check verifier, which receives the check amount and checking account information from the input device and searches a checking account database for a current balance in the checking account. An approval or decline message is issued in response to a comparison between the check amount and the current balance in the checking account. A decline message is also issued if there is a stop payment instruction on the check.        Internet site uniform resource locator (URL) http://www.commerciant.com/ discloses a wireless check processing system which provides for real-time authorization and clearing of checks at the point of sale. Bank routing and customer account numbers are captured along with the customer's signature.        Internet site uniform resource locator (URL) http://www.pizzanewsonline.com/cross_check_authorization.htm discloses a check authorization application that runs on a wireless handheld device that enables a merchant to enter check information into the handheld wireless device and have a check approved within 2–3 seconds.        
For the foregoing reasons, there is a need for a system and method to determine, in real time, upon receipt of check information from a check writer, whether the check writer's checking account is open, whether the check writer has written more than a specified number of checks in a specified time period, whether the check writer's checking account has any unpaid checks, and/or whether the checking account has a positive account balance, using a device and preferably a standard off-the-shelf handheld wireless device, such as a text messaging enabled cell phone, web enabled cell phone, short message service (SMS) enabled wireless device, wireless application protocol (WAP) enabled cell phone, personal digital assistant (PDA), pager, mobile phone, or other suitable wireless device, that the check taker typically carries substantially at all times, is easy to use, low priced, cost effective, and indicates to the check taker, in a simple and easy to understand manner, whether or not to accept a check for payment.